Form 1065 Form 8825 showing up as non-passive
Partnership has two rental real estate activities. Both are passive activities. One is a net loss this year, the other has net income. Neither have the box checked for "property is not a passive activity". Both are marked for not being a qualified business.
Other than the income and expense figures, the inputs are identical; however, the first one (loss) is showing up on K-1 as Passive and the second is showing as Non-Passive (this is on a "Supplemental Information" page 2 attachment to the K-1). I can't see any way to make it say Passive. From what I read, passive should be the default...
ETA if I put in an amount to make the second one a loss, it changes to Passive. Why isn't it defaulting to passive regardless?
ETA I see others have posted on this issue and no solution. This is happening on all our similar partnerships. Lacerte need to fix this? In the meantime, I presume the partners can report it as passive income?
